the one account??????

smokey77

We are 1st time buyers with a deposit of £100,000 (equity from parent's 2nd property), husband is self employed, last years profit £26,000, I am on £27,770 gross, my income goes up the scale every Sept gaining £1,500 usually. Found a house on for £199,999 which is beautiful so would be looking at mortgage of £95,000 (hoping to have an offer accepted). Britannia have a fixed rate at 6.34% for 5 or 10 years. Thanks

wymondham

I'll reply on the other thread...
http://forums.moneysavingexpert.com/showthread.html?t=587535&page=7

smokey77

ok will keep it to that one, thanks

nrsql

I compared the one account with interest only (and not a particularly good rate) and keeping the extra in a taxed deposit account.
Think I was working on starting at about £1000 monthly payments and £500 per month over pay on the one account.
The one account showed a £1500 loss after 5 years before it started to catch up - but that was assuming no overpayments on the other mortgage.
(The initial figures might be wrong but it was about 5 years before the overpayments on the one account cancelled out the high inteest rate).

Of course it depends on the rates on the various products but I would say the only reason that a one account might be good is if you were going to leave large amounts in your current account otherwise - even moving it to an e-saver would probably work out better. It's more of an incentive thing than a good product.